First-time buyers, on the whole, are taking out longer mortgages as they attempt to manage affordability concerns – yet there are some are bucking the trend in a bid to cut down future debt.
Those buying their initial homes take on average loans of 31 years, according to UK Finance data, up from 28 years a decade ago.
The logic is simple. Longer mortgages cut monthly payments, as the debt is repaid over a longer period.
Shorts
But there is, of course, a downside. Extending mortgages means paying greater amounts overall – as you accrue more interest – while you end up not becoming debt-free until later in life.
